Assessing MakerDAO stats as it struggles to maintain market share

• MakerDAO fell to fourth place by way of TVL rating for DeFi protocols.
• MKR’s value surged by nearly 25% within the final month.

Decentralized lending protocol MakerDAO [MKR] has slipped additional within the rating of DeFi platforms by way of whole worth locked (TVL), shedding 11% prior to now month.

How a lot are 1,10, 100 MKRs price right now?

In response to knowledge from DeFiLlama, MakerDAO’s TVL presently stands at $4.48 billion, placing it in fourth place behind Lido Finance [LDO], Aave [AAVE], and JustLend.

Supply: DefiLlama

Aave has benefited from MakerDAO’s undoing

Within the aftermath of Curve Finance’s exploit, Aave’s TVL plummeted severely, inflicting it to briefly lose its spot because the protocol with the second-highest DeFi TVL to MakerDAO.

As liquidity suppliers and debtors sought new “houses” for his or her funds,  MakerDAO amplified its Dai Financial savings Fee (DSR) to eight%, inflicting the entire quantity of the DAI stablecoin deposited within the DSR contract to leap from 339.4 million to 556 million, in keeping with Makerburn.com knowledge.

Its wrapped staked Ether tokens (wsETH) deposits climbed, resulting in its TVL surge, and it turned the second-largest DeFi platform by way of TVL after Lido. 

Nevertheless, quickly after, the protocol handed a proposal to cut back the DSR to five%, inflicting quite a lot of whales to take away beforehand offered liquidity from the DSR pool. 

For instance, after the DSR was slashed, Tron founder Justin Solar withdrew 206 million in DAI and 235,556 wsETH from the pool, knowledge tracked by Arkham Intelligence confirmed. 

The DSR discount has since resulted in a gentle decline within the protocol’s TVL, placing it 4 locations behind the Lido. 

MKR, however, excels

Regardless of the regular decline in MakerDAO’s TVL within the final month, the worth of its native token MKR has climbed. At press time, the altcoin exchanged palms at $1,410, having grown by 24% within the final month, in keeping with knowledge from CoinMarketCap.

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An evaluation of MKR’s value actions on a each day chart revealed that the token initiated a brand new bull cycle on 1 September. Its Shifting Common Convergence/Divergence (MACD) indicator confirmed this. 

As bulls regained market management, they drove up each day accumulation amongst spot merchants. Though accumulation has slowed at press time, key momentum indicators remained positioned above their respective impartial strains, suggesting that MKR accumulation nonetheless surpassed distribution. 

Supply: MKR/USDT on Buying and selling View